Property Relations

under the Family Code

of the Philippines
Atty. Roi Andrei S. Galang
General Rule
• In the absence of a contrary stipulation in a
marriage settlement, Absolute Community
Property applies to al Filipinos, regardless of the
place of marriage and their residence.
Exceptions:
• 1. When both spouses are aliens
• 2. As to the extrinsic validity of contracts affecting
property not situated in the Philippines where the
property is located.
• 3. As to the extrinsic validity of contracts entered
into the Philippines and executed in the country
where the property is located.

• Extrinsic validity – form and due execution

Absolute Community
Property

• Default property regime after the

Family Code took effect (3 August
1988)
ACP: when it
commences
• At the precise moment of the
celebration of marriage
ACP: what it consists of

• All the property owned by the spouses at the time

of the celebration of marriage.

• Winning from gamblings included.

• Spouses cannot exclude specific properties from

the regime.
ACP: what remains
exclusive property
• Properties acquired before the marriage, for those
with legitimate descendants with a former
marriage.
• Properties acquired during the marriage by
gratuitous title, i.e. donation, inheritance by testate
and intestate succession, including the fruits of
such properties (except when the donor/testator
expressly provided that the property shall form part
of the ACP
• Properties for personal use (except jewelry).
ACP: Charges and
Obligations
• 1. Those contracted during the marriage by
administrator-spouse for the benefit of the ACP;
• 2. Those contracted during the marriage by both
spouses.
• 3. Those contracted during the marriage by one
spouse with the consent of the other.
• 4. Those contracted by the either spouse with the
consent of the other to the extent that the family
may have been benefited.
ACP: Charges and
Obligations
• 5. Those contracted before the marriage by either
spouse insofar as they redounded to the benefit of
the family.
• 6. Contracted before the marriage by either spouse
which have not redounded to the benefit of the
family in case of absence or insufficiency of the
debtor-spouse’s exclusive property, but the
payment shall be considered as an advance to
his/her share.
ACP: Charges and
Obligations

• 8. Those incurred by either spouse by reason of a

crime or quasi-delict in case of absence or
insufficiency of the debtor-spouse’s exclusive
property, but the payment shall be considered as
an advance to his/her share.
• 9. Taxes, liens, charges and expenses upon the
community property.
ACP: Charges and
Obligations
• 10. Taxes and liens for mere preservation made
during the marriage upon the separate property of
either spouse used by the family.

• 11. Expenses of litigation between the spouses

unless the suit is found to be groundless
ACP: Administration

• General Rule: Administration of both spouses

belongs to both spouses jointly. If they disagree,
the husband’s decision prevails. However, the wife
has five (5) years to seek recourse from the court.
Otherwise, it is presumed she agreed to his
decision.

• Exception: When the other spouse is incapacitated,

or unable to participate in the administration.
ACP: Disposition
• Either spouse may, through a will, dispose of his or
her interest in the community property. However,
the will should refer only to his or her share in the
community property.
ACP: Disposition

• Donation: As a general rule, donation of one

spouse without the consent of the other is not
allowed:

• Exceptions:
• Moderate donations to charity due to family rejoicing or
distress.
• Moderate gifts by each spouse to the other due to
family rejoicing.
ACP Disposition
• In the absence of authority from the court or
written consent of the other spouse, any
disposition or encumbrance of the community
property shall be void.
ACP: Dissolution
• 1. Death of either spouse
• 2. Legal separation
• 3. Annulment or judicial declaration of nullity
• 4. Judicial separation of property during marriage
ACP: Liquidation
Procedure
• 1. Inventory of Assets
• 2. Payment of obligations
• 3. Delivery of exclusive property
• 4. Balance of ACP to be delivered equally between
the spouses.
ACP: Liquidation
• The community property shall be liquidated in the
same proceeding for the settlement of estate of the
deceased spouse.

• If no such judicial settlement is instituted, surviving

spouse shall liquidate the property judicially or
extrajudicially within one year from the death of
the deceased spouse.
ACP: Liquidation

• If no liquidation is made within the period, any

disposition or encumbrance of the community
property of the terminated marriage shall be void.
• Non-compliance with the liquidation procedures
would mean that a subsequently contracted
marriage will follow a complete separation of
property.
Conjugal Partnership of
Gains

• Default property regime for marriages before the

Family Code took effect (3 August 1988).
• For marriages after the Family Code took effect,
may be entered into by the parties through a
marriage settlement.
CPG: What it consists of
• 1. Everything acquired by onerous title during the
marriage at the expense of the common fund.
• 2. Proceeds, products, fruits and income of the
separate properties.
• 3. Everything acquired by spouses within marriage
through their own efforts.
• 4. Everything acquired by them by chance.
CPG: What it consists of
• In cases of property purchased by installment, paid
partly with conjugal funds and partly with exclusive
funds, if full ownership was vested during the
marriage, the CGP shall reimburse the owner-
spouse.

• In case of improvements: if original value is less

than the new value after improvements, the land
becomes conjugal, otherwise, exclusive, subject to
the cost of improvement.
CPG: What remains
exclusive property
• Property acquired by either spouse during the marriage by
gratuitous title;
• Property acquired by right of redemption, by barter or exchange
with property belonging to either spouse;
• Property purchased with exclusive money of either spouse.
• Money received under the Social Security Act;
• Intellectual property;
• Business property (except earnings);
• Collection of credits belonging exclusively to one spouse (except
interest)
• Proceeds from the sale of separate property
• Indemnity in case of expropriation or under an insurance policy
covering separate property.
CPG: What remains
exclusive property
• Plata v. Yatco
• Property purchased when wife was still single.
• After marriage, husband and wife co-signed a mortgage
on the property.
• Upon foreclosure, only Husband was sued for unlawful
detainer.
• Wife refused to leave the premises.

• Held: co-signing the mortgage does not convert the

property to CGP.
CPG: Charges and
Obligations
• Almost the same as ACP
CPG: Administration
• Belongs to both spouses jointly.
• In case of disagreement, husband prevails, subject
to recourse by the wife to property remedy which
must be availed of within 5 years.
CPG: Disposition
• Sale by husband of CPG property without consent
of wife, without showing that the latter is
incapacitated, is void from the beginning.

• Spouses are not co-owners of CPG during the

marriage and thus cannot alienate the supposed ½
interest of each
CPG: Disposition
• Must be with the consent of the other spouse
except moderate donations for charity, on
occasions of family rejoicing, or distress.
CPG: Termination
• Death
• Legal Separation
• Annulment or declaration of nullity of marriage
• Judicial separation of property.
CPG: Liquidation
• Procedure:
• Inventory
• Amounts advanced by CPG in payment of personal debts and
obligations shall be credited to CPG
• Reimbursement to each spouse for the use of his/her exclusive
funds in the acquisition of property or for the value of his or her
exclusive property, the ownership of which has been vested in the
CPG.
• Debts of CPG paid out of conjugal assets
• Remains of exclusive property delivered to respective spouses.
• Indemnification for loss or deterioration of separate property.
• Net remainder of CPG divided equally, except in case of waiver or
other arrangement
• Presumptive legitimes delivered to common children
• Conjugal dwelling goes to parent with whom majority of children
remains ( below 7 y.o.= deemed to have chosen mother); oherwise
court decides.
Separation of Property
• Sufficient causes:
• Civil interdiction
• Absence
• Loss of parental authority
• Abandonment
• Abuse of power of administration as granted in the
marriage settlements
• Separation in fact and reconciliation is highly
improbable.
Separation of Property
• May be agreed upon in marriage settlements.
• After judicial separation of property, and the
spouses reconcile, it becomes the default property
regime.
SOP: what it consists of:
• Present or future property
• Earnings from profession, business or industry
• Natural, industrial or civil fruits of separate
properties

If partial property is not considered separate, the

same is presumed to pertain to the ACP.
SOP: Transfer of
administration of separate
properties
• One spouse becomes the other’s guardian
• One spouse is judicially declared an absentee
• One spouse is given the penalty of civil interdiation
• One spouse becomes a fugitive.
Property Regimes of
Unions Without Marriage
• With capacity to marry
• Salaries and wages owned in equal shares
• Properties acquired through exclusive funds remains
exclusive provided there is proof
• Properties acquired by both through work or industry
governed by rules on co-ownership
• Properties acquired while living together owned in equal
shares
• Forfeiture: in favor of common children, common
descendants, or respective surviving descendants.
Property Regimes of
Unions Without Marriage
• Without capacity to marry
• Salaries and wages separately owned
• Properties acquired through exclusive funds remains
exclusive
• Properties acquired by both through work or industry
owned in common in proportion to respective
contribution.
• Properties acquired while living together: no
presumption of joint acquisition
• Forfeiture: in favor of existing valid marriage if one
spouse is validly married to another.
Thank you!